A handsome reward: the Collins family completes its path to financial freedom.

"WE'RE COMPLETING OUR JOURNEY from the pit to the palace," says Samuel Collins Ill. After years of sacrifice, he and his wife, Doris, are preparing to move into an historic estate in Hitchcock, Texas. Once owned by Confederate Army lieutenant and horticulturist Henry Martyn Stringfellow, their new 12-room house has four bedrooms and sits on 9 1/2 acres--which should be plenty of room for the couple and their three kids: Torin, 11; Dallas, 9; and Joseph, 7.

Last summer, while the Collins' 125-year-old home was being renovated, they opened the estate for a weekend of community events to mark June 19 or Juneteenth, the day in 1865 that slaves in Texas learned they were free. That weekend, Doris and Sam say they also celebrated their financial freedom. The momentous milestone was achieved through strict financial discipline, which allowed the couple to climb out of debt and purchase and restore the historic home.

Just six years earlier, they were neck deep in debt and living paycheck to paycheck in a one-bedroom apartment in Texas City. Desiring more space, the couple purchased an acre of land in Hitchcock for $8,000 and shelled out $500 for architectural plans for their dream home. But when they applied for a $140,000 mortgage, delinquencies on Doris' credit report resulted in a subprime mortgage offer at an interest rate close to 10%. "I was shell-shocked," says Sam, who was just starting his career as a financial adviser. They refused the loan.

At the time, the Collins' combined income of $61,000 was just marginally higher than their $55,000 debt--which included a $15,000 loan they had taken against their plot of land, as well as car loans, student loans, and credit card debt. Discouraged, they resolved to fix Doris' credit and to tighten their belts.

As a first step, they signed up for a 13-week debt-reduction program taught at a church in Galveston using videos from financial guru Dave Ramsey's Financial Peace University program. Nine months later, they had paid off $40,000 in liabilities, learning many material and spiritual lessons about wealth along the way.

To reach their goal, they quickly jettisoned their cell phones and stayed "cell free" for more than a year, saving at least $1,200. Doris, 36, and Sam, 35, set a budget, cut excess spending, stopped eating out, and began paying cash whenever possible. Already saddled with a $250 monthly car payment on their 2000 Dodge Neon, Sam refused to pay for repairs or buy another car when his 1989 Honda Prelude broke down. Instead he put his pride aside and caught rides to work with his assistant, paying for gas. If he had a client meeting, Sam took the working car and dropped Doris off at her job as an assistant manager at Walgreens.

Another innovation was family game night, where they played board games or found other free entertainment. They also started the Collins family bank, where all spare change is pooled for family treats, such as movies and ice cream. What's more, rather than splurging on big yearly vacations, the couple took mini getaways to nearby cities, such as Houston. On a trip to a family reunion, Sam even insisted that Doris buy a soda without ice to fill up the cup so there would be enough to share. "It's funny now," says Sam, "but it wasn't funny then."

The couple also let go of plans for their dream home; in 2000, they sold their acre of land for $18,000. They also paid off $15,000 they had borrowed to buy discounted Walgreens stock Fortunately, the stock's price had risen, so the couple sold their shares to pay off the loan and a few other debts.

By 2002, Sam and Doris were able to buy their first home--a three-bedroom fixer-upper in La Marque for $35,000--at a mortgage rate of 7%, which they later reduced to 4.5% through refinancing. They continued to live within their means and sold the home three years later for $57,000. The Collins family's commitment to climbing out of debt and its financial discipline illustrates Declaration of Financial Empowerment Principle No. 2: I will be proactive in managing my budget, credit, debt, and tax obligations.

Today the couple earns a six-figure annual income and owns four properties in the Galveston County area. Looking ahead, they currently save more than $20,000 each year, and Sam is able to max out his contribution to his 401(k) at the $15,000 limit. "Too often, African Americans have a single-generation consumption mentality, leaving nothing for the next generation," he says. "We wanted to change our family legacy."

Declaration Financial empowerment

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment and hereby pledge the following:

1 I will use homeownership as a foundation to build wealth.

2 I will be proactive in managing my budget, credit, debt, and tax obligations.

3 I will maximize my earnings potential, live within my means, and commit to save and invest at least 10% of my income.

4 I will ensure that my investments are properly diversified and correspond to my current financial goals.

5 I will immediately commit to a program of retirement planning and investing.

6 I will preserve and protect my assets through proper financial and insurance planning.

7 I will ensure that my children receive a thorough education on financial matters and business issues.

8 I will ensure that my wealth is passed on to future generations through proper estate planning.

9 I will actively support the creation and growth of viable, competitive blackowned enterprises.

10 I will use a portion of my wealth to strengthen my community.

The Collins' Advice:

* Have a written budget. Track monthly spending so you know exactly where your money is going and where you might be able to cut expenses. It may seem like a small amount, but cut out postage costs by paying bills online. Consider that mailing 12 items a month results in an annual cost of almost $60. Online payment can also make it easier to track spending.

* Consistently monitor your credit score. Be sure to check reports at all three credit reporting agencies, Equifax (www.equifax.com), Experian (www.experian.com), and TransUnion (www.tuc.com) and report any errors. Consumers can receive a free credit report once a year from any of the monitoring agencies at www.annualcreditreport.com.

* Improve your financial literacy. The Collins family followed tips for financial peace developed by personal finance guru Dave Ramsey (www.daveramsey.com). They also found the following titles to be helpful: Taking Care of Business. Establishing a Financial Legacy for the African American Familyby Lee Jenkins (Lift Every Voice: $13.99); The Great Investment: Balancing Faith, Family and Finance to Build a Rich SpiritualLife by T.D. Jakes (Berkley Trade; $13); The Gospel of Good Success." A Road Map to Spiritual. Emotional and Financial Wholeness by Kirbyjon H. Caldwell (Fireside; $13); and The Richest Man in Baby-Ion by George S. Clason (Signet: $6.99).

* Learn from others. Take a class at the local community college or learn from the successes of those around you. Some of the best advice the couple received was from Sam's frugal, 78-year-old uncle, Edwin, who advised them to wait and see what the road ahead held before building their dream home. "My uncle looked like a genius when the market fell apart and our income dropped," Sam says.